Monday, 12 August 2013

Caza's second Bone Spring well is success

The second well - the Caza Ridge 14 State No.4H - has been flowing for the past few days after being fracture stimulated, and rates have remained steady, the firm said.

The peak 24 hour rate was 1,004 barrels (bbls) of oil and 1.3 million cubic feet of natural gas, which equates to 1,221 bbls of oil equivalent.

In July this year, Caza described the first well targeting the Bone Spring interval as a “good result”.

The well - Unit 32 No.2H - on the Lennox prospect in New Mexico, flowed at a stabilised rate of 390 barrels of oil equivalent. The majority of this – 334 barrels – was oil.

Caza chief Michael Ford told investors Monday: "This is another excellent result on the Copperline property and another successful Bone Spring well for the company. We are very pleased with the result and the value created for our shareholders.

Log data and samples were also obtained across the Brushy Canyon, Avalon and 2nd Bone Spring Sand intervals, which indicated oil and natural gas.

Ford said: "The positive log and core data in the shallower intervals not only creates future development opportunities, but will also add to the company's reserve values.

"Production from this well and the property will further increase Caza's oil to gas production ratio and add significant cash flow to the company."

Last week, Ford said he was very pleased with the group’s ongoing operations in the Bone Springs play.